India's Electricity Generation and Pollution Burden

In August 2022, India updated its Nationally Determined Contribution under the Paris Agreement, committing to:

• Adopt a climate-friendly and cleaner path to development.
• Reduce the emissions intensity of GDP by 45% by 2030 from the 2005 level.
• Achieve 50% cumulative electric power installed capacity from non-fossil fuel sources by 2030.

Despite these commitments, thermal power continues to dominate India's electricity production, contributing significantly to carbon emissions. The distribution of responsibility for pollution between power-producing and consuming states is a critical issue.

Current Electricity Capacity and Carbon Emissions

• India's total installed capacity is 4,56,757 MW, with contributions from: 
  • Central sector: 22.9%
  • State sector: 23.7%
  • Private sector: 53.4%
• Thermal power plants generate 2,37,268.91 MW, distributed as: 
  • Private sector: 36.20%
  • State sector: 32.03%
  • Central sector: 31.77%
• India accounts for 20,794.36 kg of carbon emissions from electricity.
• 59.12% of India's energy supply is from coal.

State-wise Electricity Generation and Consumption

• Maharashtra leads in non-renewable electricity generation with 31,510.08 MW.
• Rajasthan has the highest renewable electricity generation capacity at 22,398.05 MW.
• States like Uttar Pradesh, Odisha, and Chhattisgarh consume only a fraction of the electricity they produce.
• Gujarat is a significant consumer despite its low internal generation.

Pollution Burden and Compensation Mechanisms

• States producing significant thermal power bear a disproportionate share of pollution. 
  • Tripura has the highest share (96.96%) of thermal power in total electricity generation.
• States like Chhattisgarh and Odisha produce maximum thermal electricity but have lower per capita consumption.

Compensation mechanisms for these States could include:

• Allowing States to tax thermal power generation.
• Union government collecting and transferring generation tax to the producing State.
• Compensation through the Finance Commission based on environmental and climate change concerns.

Given India's international climate commitments, it's crucial to develop a fiscal roadmap to support the States bearing the pollution burden.

The article emphasizes the need for adequate compensation for states producing thermal power to balance the environmental impact and support economic development.